Issues Faced while Implementing an ERP
What is ERP Software?
Enterprise resource planning software is an application suite thatconsolidates, automates, and centralizes organizations’ core businesselements, functions, and resources. The best enterprise resource planningsoftware inculcates the capabilities to deliver efficient end-to-endprocesses. ERP solutions can handle basic to complex business processes withease. With features such as financial management, supply chain management,production management, procurement, IT management, warehouse management, andmany more, ERP systems assist organizations in optimizing, streamlining, andmanaging various business units efficiently.
Can ERP help in making better business decisions?
In an ultra-competitive environment, the value of the right business decisionsis second to none for propelling your business to the next level. ERPconsolidates data at a centralized place and eases the analysis process forbetter decision making. Whether it is about forecasting inventory levels,predicting customer demands, gauging revenues, or anticipating productionlevels, ERP software bolsters the accuracy of business decisions by analyzingcurrent business conditions for real-time data analytics. Businesses can basetheir critical decisions on the accurate analytics and data insights providedby the ERP software.Best ERP Systems
Top 10 ERP Systems
1. NetSuite ERP Systems 2. SAP ERP Systems 3. Tally ERP Systems 4. SAP Business One ERP Systems 5. ERP Next ERP Systems 6. Encompass ERP Systems 7. Odoo ERP Systems 8. MYOB ERP Systems 9. Axis ERP Systems 10. GRMS ERP SystemsNetSuite ERP Systemsoffers a comprehensive collection of cloud-based applications which are usedby more than 25,000 customers in 200+ countries….Read moreSAP ERP Systemshelps businesses in enhancing their competitive edge and business growth. Itis a market-leading ERP System that has the capability to support the world’slargest as well as small and midsize organizations across 25 industries….Read moreTally ERP Systems has been supporting users across industries in more than100countries and it continues to be an industry leader in the enterprise resourceplanning software domain….Read moreSAP Business One ERP Systems helps enterprises in restructuring criticalprocesses, gain better visibility into the business, and making more informeddecisions based on real-time information….Read moreERPNext ERP Systems is an open source ERP system that has the ability tosupport various verticals like: Manufacturing, Distribution, Services, Retail,Education, etc. It integrates several features traditional ERP systems well asmany other modern products….Read moreEncompass ERP Systems concentrates on helping manufacturing firms of all sizeswith overall ERP/MES execution, integration and revamp of traditionalsystems….Read moreOdoo ERP Systems is an integrated, adjustable, open-source collection ofbusiness applications. It has the ability to meet business requirements likeCRM, Sales, Project, Manufacturing, Inventory, and Accounting etc….Read moreMYOB ERP Systems offers more than 50 business management solutions that helpin managing accounting, payroll, payments, retail POS, CRM etc….Read moreAxis ERP Systems offers ERP solutions specifically created to help metals,wire and cable manufacturing companies of all sizes….Read moreGRMS ERP Systems helps manufacturing organizations with managing theirbusinesses by offering simple yet an efficient ERP system….Read more
Types of Best ERP Systems
It is challenging to define the category because of the fluidity of top ERPsoftwares processes and the variety of variables that influence it. It can becategorized by degree of operation, the scale of the market and rollout. BestERP systems can be categorized as follows:Generalist ERP – Both legacy solutions and cloud ERP are generalists. Theyrespond to manufacturing processes. Such technologies provide broadflexibility and functionality to fit specific specifications of the industry.Also, it’s not surprising given that its huge market generalist best ERPsystems vendors are also one of the biggest.Open-Source ERP – ERP system are still a tiny portion of the overall top ERPsoftwares market. Open-source improves productivity and product adoption fordevelopers as the top ERP softwares will automate extremely customizablesystems.Vertical ERP – These are ERPs which are specific to the industry. Verticaltop ERP softwares vendors are often startups or smaller companies trying tofocus on a niche, such as construction, distribution of supermarkets or retailfashions. Microsoft Dynamics is amongst the most common examples of thisspecific model.Small Business ERP – These are best ERP systems from off-the-shelf cloud oron-premise. The best ERP systems is often modified with pared-downfunctionality. Instead of offering a completely integrated program, smallcompany ERPs such as PeopleSoft support one or two market processes andleaving the others out. For example, it only features HRM and accountingfunction, with CRM, inventory, or supply chain management add-on options.
Why Use Best ERP Systems?
The objective of best ERP systems is to improve efficiency, simplifyoperations and encourage an organizational collaborative culture. This leadsto reduced prices and increased efficiency, which can ultimately lead tobetter performance.Increases Efficiency – In one best ERP systems platform, business activitiessuch as accounting, sales, marketing, warehousing and inventory are embedded.Collecting and accessing data across the organisation, simplifying inter-departmental business processes, is easier. Similarly, ERP automates routineactivities, such as data entry or report creation. Repetitive procedures areremoved, allowing managers to focus on their main accomplishments.Promotes Collaboration – Best ERP systems helps in standard communicationbetween different departments. Data silos are combined, and a large networkties up individual workspaces. Such design helps departments inside the bestERP systems program that used to work in a bubble to quickly communicate withother departments. Additionally, SaaS ERP expands communication between remoteworkers and HQ via the internet.Increases Data Security – Best ERP systems have security systems to defendagainst security breaches and restriction regulations. Getting a single datacentre implies close control of access points and consolidated protection.Similarly, user consent rules provide the administrators with the freedom tolock confidential data without limiting user access to other content.Administrators can also rapidly deactivate terminated staff access and givenew staff authorization.Comply with Industry Regulations – Many best ERP systems provide streamlinedregulatory service requirements and regulatory documentation to help companiesfulfil a multitude of market needs. Best ERP systems adhere to monitoringstandards for the financial statements, company compliance and computermanagement issues.Make Accurate Forecasts – Using machine learning and artificial intelligence,advanced best ERP system with analytics tools allow users to drill down intobig data. Firms with complicated data sources can use ERP to gain competitiveadvantage by extracting meaningful information from the data.Increases Operational Flexibility – Cloud-based best ERP systems provides theability to maximize versatility in activities. For one, it lets you mergeexisting apps into the program or distribute the ERP data for a morestreamlined workflow to other business apps. Second, several of these offeryou the opportunity to add more modules as your company expands, so you don’thave to upgrade your program with new applications anymore.Reduces Operational Costs – The company should also use best ERP systems toreduce costs. As procedures are standardized and main indicators are trackedclosely, disturbances, delays and breakdowns are expected, and their effect ishandled better. Often top ERP softwares companies take care of patches, offerconstant updates and handle debugging in the event of technical issues. Thisensures that you should not care about operating costs.
Who uses Best ERP Systems?
Since best ERP systems offers functionalities for most of a firm’s divisions,most, if not all, employees use this kind of application. The list contains afew departments that can not perform optimally without using ERP.Accounting and Finance — Departments of finance and accounting need ERP fornumerous uses, the most significant being the financial management of all thecompany’s business exchanges. Financial managers also use ERP to generatefinancial reports and provide both reviews and audits with financial data.Operations — Operations includes the activities particular to a company’sspecialisation. For example, production lines are relevant to manufacturingfirms, project management and support to service providers, and distributionmanagement of warehouses and inventories. Many kinds of operations areimportant for many categories of businesses, such as inventory management.Some are unique to business fields such as financial services, such as projectmanagement and fund management.Sales — Sales require ERP but there are loads of resources they could use intheir jobs. The key reason ERP is so important for sales is that it provides alot of useful past revenue statistics and product and service knowledge. MostERP system goods also handle consumer credit limitations details and can beused to recover debts.Product — Product teams will not always explicitly use best ERP systems butthey depend on system information. Sales reports will demonstrate which itemsare most effective although information on sales and flaws help enhance thecompany service offering. Engineers and technicians can also use ERP systemand its implementation with PLM or CAD systems to inform the productiondepartment about product changes.Purchasing and Procurement — The most important challenge in purchasing is toknow precisely what, and when, goods and services a company wants. Best ERPsystem provide information on the sales data to be accomplished which can becontrasted to the stock available to determine what needs to be purchased.Best ERP systems also monitor raw product or parts actual costs which helpproject managers negotiate better.Quality Management — In industrial production, quality management isessential, but can also be important in distribution, and even in professionalservices. The quality standards are high for highly regulated industries suchas food and beverage, and heavy penalties for non-compliance. Although qualitycontrol may be applied as a stand-alone tool, most ERPs for manufacturingsystems have quality monitoring features.
Benefits of ERP Systems
The benefits of best systems in an organization make day-to-day operations andlong-term planning more efficient. Below are several of the biggest top ERPsoftwares benefits when implementing this type of software:Focused IT Costs – While ERP is always a big investment, it can consolidatethe IT costs and increase efficiency. Instead of investing money on variousprograms that include trained personnel, equipment, support services andpermits, all such expenses may be concentrated on one ERP.Total Visibility – This ERP advantage is one of the system’s major sellingpoints. ERP enables direct exposure to all critical processes of the companyby having details readily available to all senior managers from anydepartment.Improved Reporting and Planning – Implementing an ERP suite around theenterprise ensures the team has a consistent, centralized monitoring frameworkfor each operation. ERP program is capable of producing valuable data andanalyses at any time. This software allows analyzing and evaluating functionsacross departments, without having to worry about multiple databases andemails.Complete Customization – One of the significant benefits of current-day topERP softwares is its customizable architecture. Most ERP vendors offermultiple applications that can be jointly implemented according to businessneeds. For a few examples, every program is configured for standing alone orintegrating with the wider suite.Improved Efficiency – ERP can significantly decrease workforce time andeffort required to manage the daily operations. Executed properly, an ERP cansignificantly minimize or remove monotonous work procedures, thus relievingteam members to focus on tasks that affect revenue. The system can also assistin the adoption and enforcement of best practices in the industry, bringingall actions into line across the company.Customer Service – ERP offers end to end tracking facilities and providesinsights on the daily processes and data. This helps organisations to provideenhanced customer support to all the clients through targeted marketing.Data Security and Quality – Data confidentiality is one of the key benefitsof an ERP program. After all, data is at the very heart of the ERP definition.The sharing of data across organizational areas such as customer service,sales, branding and marketing reinforces collaborative work across a company.The other side to widely accessing data is controlling who can view and changethe data. Best ERP systems have intangible checks to ensure data is secure.Improved Collaboration and Workflows – Collaborative work is an integralaspect of a productive business. An ERP interface streamlines thecollaboration cycle for others by allowing workers access to the informationthey require when they want it. They do so by offering a cross-departmentaldatabase where each department critical data is channelled into one singlelocation.Standardized Business Processes – Most ERP solutions are equipped as perquality standards within the industry. These tried-and-true methods addsignificant opportunities for organizations of all types to the table. It alsoenables companies to standardize their own procedures and methods, furtherboosting productivity and efficiency.Facilitated Regulatory Compliance – Enforcement standards remain one of themost complex on-going challenges for companies. ERPs help in regulatoryrequirements, combined with built-in reports, through secure and validateddata.Improved Supply Chain Management – The Best ERP system enhances the operationof the supply chain in several respects. This enhancement results in shorterlead times, more on-time deliveries and many other advantages which improvebusiness’ overall operation and success. The supply chain will become strongerand more sensitive via a well-designed ERP framework through enhanced salesforecasts, inventory management, procurement and much more.
Features of ERP Systems
The following is a list of the most important ERP features most commonly foundin an top ERP softwares system:Integration – This ERP feature is a significant part of what distinguishesthis solution from other application. While many fully-featured solutionsboast their capacity to integrate with other platforms, there is nothing likea set of products constructed to work together. Integration guarantees aharmonious working together with the various features provided by ERPapplications.Automation – The top ERP softwares automates repetitive activities such asorder entry, payroll, billing, invoicing, monitoring and more. Automationreduces the several hours that the workers will usually expend on thesesystems, enabling them to work on more critical activities. Optimizing thehours for the workers means more productive working days. Automation permitsthe transmission of data from one part of the system to another, without anyrisk of failure.Data Analysis – Since an ERP is now gathering and storing details from all ofthe company processes, capitalizing on the knowledge by research makes sense.Simply placed, this ERP feature detects trends and patterns within theprocesses. It encourages consumers to comment on the success of otherprojects, as well as make guidance for potential business decisions.Reporting – Often individuals interchangeably use the words reporting andanalysis when asked about an ERP. While this isn’t usually a problem,differentiating between the two is still worthwhile. Users can think of thereporting capability of ERP as the tools necessary for conveying analysis toan end customer. Such resources also provide dashboards that can bepersonalized, Gantt maps, pie charts, bar graphs and other graphicrepresentations. Many platforms also enable users to restrict access to theinformation, protecting crucial data of companies.CRM – Customer Relationship Management (CRM) feature is useful for a numberof purposes. First, for firms whose client base has become too big fordatabases a CRM is a good choice. Second, CRMs consolidate customer datawithin an ERP, enabling quick access when working with other parts of thenetwork. An advanced CRM, for example, helps consumers to view the billingdetails and consumer addresses while handling shipments.Accounting – The management of finance is one of the most critical roles ofany sector. As such, any reasonable ERP should include powerful accountingtools. Best ERP systems help to address processes such as payables, accountsreceivables, fixed asset management, risk management and tax management. Thereare many solutions available which can also handle various exchange rates andtax laws if you do business outside the country on a routine basis.Tracking and Visibility – One of the biggest features of ERP solutions istheir ability to give clear visibility. Nowadays, several best ERP systemshave the ability to send finished products as well as materials fromfabrication to shipment. All of this is rendered possible by the high degreeof functionality offered by best ERP systems. Monitoring materials is an easyprocess because all of the applications will submit and receive details. Thisexposure standard helps consumers to consider and predict problems such asshortages and product outages.
Potential Issues with ERP Systems
One-size-fits-all doesn’t cut it – Install-and-play, off-the-shelf best ERPsystems works well with simple and direct processes of small businesses. Yet,in a complex setting, a centralized structure easily runs into problems formajor companies with branches in various locations. Variations of conditionssuch as history, laws and legislation hinder the introduction of an integratednetwork. Either the ERP continues to suffer from low adoption rates or acostly structure is left in a neglected company warehouse.Unsupported applications – The more systems you have in operation, the lessthe choices for seeking a completely optimized quick-install best ERP systemswould be. If you intend to eliminate current programs, you’ll need todetermine the functionality of ERP with each of these systems. It’s time-consuming, so even if you’re fortunate, in space of usability you can considerthe strongest ERP dropping one or two devices short. Using an best ERP systemswith an open API means that your developer will tweak the framework to fit thecurrent applications.Security risks – The broader the ERP’s scope, the greater its access points.That indicates an internal data leak is more likely to occur. Even iffirewalls and cryptography minimize this harm, the reality is that all thedata is connected to this superhighway network. Poorly implemented ERPsincrease the security risk even more. Inconsistent apps can cause crashes.Limited authoring tools force users to import external files resulting in abreak in the firewall.Lack of compliance – Many best ERP systems implementations are structured tosatisfy budgetary criteria, and the issue is less of technological failure andmore about how the best ERP systems is applied. If an accountant is not awareof the ERP process, financial oversight is easy to skip over.
AN ERP IMPLEMENTATION PLAN
The following flowchart depicts several activities that must be performedbefore implementing an ERP system.Step 1: Managers must conduct a feasibility study of the current situation toassess the organization’s needs by analyzing the availability of hardware,software, databases, and in-house computer expertise, and make the decision toimplement ERP where integration is essential. They must also set goals forimprovement and establish objectives for the implementation, and calculate thebreak-even points and benefits to be received from this expensive ITinvestment.Step 2: The second major activity involves educating and recruiting end usersto be involved throughout the implementation process.Step 3: Managers form a project team or steering committee that consists ofexperts from all functional areas to lead the project.Step 4: After a decision is made to implement ERP, a team of systemconsultants will be hired to evaluate the appropriateness of implementing anERP system, and to help select the best enterprise software provider and thebest approach to implementing ERP. In most situations, the consultant teamalso recommends the modules that are best suited to the company’s operations(manufacturing, financial, human resources, logistics, forecasting, etc.),system configurations, and Business-to-Business applications such as supply-chain management, customer relationship management, e-procurement, ande-marketplace.Step 5: Adequate employee and manager training must be provided to allbusiness, stakeholders, including managers, end users, customers, and vendors,before the system is implemented. Such training is usually customized and canbe provided by either internal or outside trainers.Step 6: The system installation process will address issues such as softwareconfiguration, hardware acquisition, and software testing.Step 7: Data and information in the databases must be converted to the formatused in the new ERP system and servers and networks need to be upgraded. Apost implementation review is recommended to ensure that all businessobjectives established during the planning phase are achieved. Neededmodifications are tackled during this phase too.
Issues Faced while Implementing an ERP
Although issues faced while implementing an ERP are numerous, but this reportclassifies them majorly into selection related issues, technical issues,psychological issues, organisational change related issues and time and costrelated problems.
Selecting an appropriate ERP
The first and foremost challenge faced by many organisations is deciding whatsort of an ERP system they should select to implement. The managers mustdecide on the size, type and scope of the ERP system they actually require andhow to choose the best solution amongst the existing hundreds of systems inthe market. This selection problem arises for all businesses without exceptionand should be considered as seriously as possible for the reason that ERPsystem choice defines a company’s strategy for at least the following 6 to 10years and, no doubt, has a major impact on the future success of the entirebusiness.To decide on the implementation of a successful ERP program, the managersshould have an in-depth understanding of the organisation’s current businessprocesses, organisational structure, culture, work environment and financialand economic strength.Due to enormous impact on the competitive advantage of the company, topmanagement must consider the strategic implications of implementing an ERPsolution keeping in mind the size of the company and the modules installed.Management must ponder about several topics like:-â€¢ Does the ERP system strengthen the company’s competitive position?â€¢ How does ERP affect the organizational structure and the culture? What isthe scope of the ERP implementation — only a few functional units or theentire organization?â€¢ Are there any alternatives that meet the company’s needs better than anERP system?â€¢ If it is a multinational corporation, the management should be concernedabout whether it would be better to roll the system out globally or restrictit to certain regional units?Only when all these points have been taken care of, can an ERP system beselected for further implementation.